Fourth Schedule SRO 2023: Discharge and Reassignment Fees in Malaysia

A solicitor prepares a discharge of charge covering three titles in one instrument. The fee is RM400 for the first title and RM100 for each additional title — RM600 total.

The same solicitor could prepare three separate instruments of discharge — one per title — and charge RM400 each, totalling RM1,200.

Can the solicitor choose the more expensive route?

The answer from the CPD talk: it depends on the registry. If all three titles are registered at the same land office — no, they should be discharged in one instrument. If the titles are registered at different land offices — yes, separate instruments are required, and three separate fees are justified.

This is one of the clearest practical scenarios in the Fourth Schedule, and it illustrates why even “simple” fixed-fee calculations require understanding the rules behind them.

For the broader SRO 2023 framework, read the overview of all six schedules.

What the Fourth Schedule Covers

Order 2(d) of SRO 2023: remuneration for discharges of charges or deeds of reassignment pertaining to charged or assigned properties shall be in accordance with the Fourth Schedule.

Unlike the First and Third Schedules, the Fourth Schedule uses fixed fees rather than percentage-based scale fees. The amounts are modest — but the rules governing who earns the fee, and how it is split between solicitors, contain important practical detail.

The Fee Table

Discharge of Charge

Item	Fee
First title or charge	RM400
Each additional title or charge in the same instrument	RM100

Deed of Reassignment

Item	Fee
First property	RM500
Each additional property in the same deed	RM100
If the deed of reassignment includes a revocation of power of attorney	Additional RM200

No discount permitted. The Fourth Schedule is not subject to Order 5’s 25% discount rule.

The Three Rules

Rule 1 — Conduct and completion. The fee is only payable to the solicitor having conduct of and completing the transaction. This means the solicitor who merely drafts the discharge document but does not see it through to registration cannot claim the full fee — the fee attaches to the solicitor who completes the process.

Rule 2 — The 50/50 split. This rule addresses the common practical situation where two solicitors are involved in a discharge:

(a) If the discharge or reassignment is prepared by the financier’s solicitor, and the signature of the attorney for the financier is attested by the financier’s solicitor, and the instrument is then forwarded to the borrower’s solicitor to complete the transaction — the fee is split: 50% to the financier’s solicitor and 50% to the borrower’s solicitor.

(b) If the discharge or reassignment is prepared by the borrower’s solicitor and forwarded to the financier’s solicitor only for attestation — the financier’s solicitor may only charge the attestation fee under the Fifth Schedule, and the borrower’s solicitor receives the full applicable fee.

The practical implication: which solicitor prepares the discharge document determines the fee allocation. Financier’s solicitor prepares it → 50/50. Borrower’s solicitor prepares it → full fee to borrower’s solicitor, attestation fee only to financier’s solicitor.

Rule 3 — Additional documents and special circumstances.

(a) Where a discharge or reassignment requires the solicitor to prepare any documents separately that are chargeable under the Fifth Schedule, those Fifth Schedule fees apply in addition to the Fourth Schedule fee. This covers ancillary documents like statutory declarations or applications that accompany the discharge.

(b) Where a reassignment involves a developer under liquidation or in receivership, the solicitor may charge additional fees in accordance with Rule 1 of the Sixth Schedule. This recognises the additional complexity — dealing with liquidators, obtaining court orders, and navigating the insolvency regime — that goes well beyond a standard reassignment.

The Multi-Title Question

Decode 24 from the CPD talk raised a comparison that catches people out:

When preparing a discharge of charge of more than one title in the same instrument, the solicitor charges RM100 for each additional title. This is clear from the fee table.

When preparing a charge of more than one title in the same instrument of charge, can the solicitor charge RM100 for each additional title?

No. The Third Schedule fees are based on the amount secured or financed — not the number of titles. A charge over ten titles securing a RM500,000 loan attracts the same Third Schedule fee as a charge over one title securing RM500,000. The per-title increment is a Fourth Schedule concept, not a Third Schedule one.

Acting for Another Party — The Fourth Schedule Exception

Under Order 7 of SRO 2023, a solicitor shall not charge remuneration to a party if the solicitor also acts for another party in the same transaction. But Order 7(2) creates an exception for the Fourth and Fifth Schedules: a solicitor may charge remuneration if the solicitor has prepared, filed, or witnessed documents under these schedules for another party in the same transaction, provided there is no conflict of interest.

The practical scenario from the CPD talk (Decode 12): a solicitor acting for the purchaser in a sub-sale where the vendor is not represented. The vendor’s property is charged to a bank. Can the purchaser’s solicitor act in the discharge of the vendor’s charge?

Yes. The discharge is a Fourth Schedule document. In a discharge, the solicitor acts for the bank, not the vendor. There is no conflict of interest with the purchaser. The exception under Order 7(2) applies.

This is a common arrangement in Malaysian sub-sales and one that the SRO explicitly permits.

The Rules Referenced in This Article

• Solicitors Remuneration Order 2023 — full text (PDF)
• SRO 2023 hub page — Malaysian Bar